Severance - Wages vs. Assets

My current position was eliminated and I was given 60 days notice with an additional 8 weeks severance payable at the same schedule as my previous wages. Immediately following my layoff, I was served by a collections attorney to settle an outstanding medical bill. He claims that my ďSeveranceĒ pay is an asset opposed to wages and thus entirely subject to confiscation by the court. Currently the severance pay is my only source of income while I search for a new job, is this legal?

1 answer  |  asked Nov 20, 2001 8:28 PM [EST]  |  applies to Indiana

Answers (1)

Brenda Franklin Rodeheffer
severance pay

This isn't really an employment but collection problem,which I have no experience in to give you an answer. However, I can tell you that severance pay is the same as wages. The unemployment office considers it wages; IRS considers it wages, etc. So if his claim relies on the fact it is not "wages", he has no claim.

posted by Brenda Franklin Rodeheffer  |  Nov 25, 2001 10:11 AM [EST]

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